CNX-NIFTY
Open-21990.10-High—22123.70—Low—21916.55--Close-22055.70
on 18.3.2024.
Support: 22053.30/21931.70/21917.50/21905.65/ 21875.25/21860.65/21834.35/21801.45/21763.95/21750.25/ 21731.40/21727.75/21726.95 21593/21530.20/21500.35/ 21448.65/21137.20/20976.80/20769.50/20507.75/20291.53/20222.45/19991.85/19875.25/19849.75/19635.30/19333.60/19329.10/19223.65/18973.30/18887.60/18837.85.
Resistance: 22075.15/ 22124.15/22126.80/ 22224.35/22297.50/22440/22525.65/22549/22590/22625/22658/22735/22787/22870/23082/23117/23124/23587.
(Bold
and underlined figures are most important)
It opened on a negative note and then had both
side moves and finally ended the day with a gain of 32.35 points.
The volatility is still
continuing which is not a good sign for a steady market and eventually it can
drag it down in coming days/weeks & months, which please keep in mind. It is important to mention here that the gap
filling threat for earlier gap on the daily & weekly chart has faded out
but please note that eventually it will fill the gap someday(weekly gap of
20291.55 is yet to be filled), which please note.
It is below its Inverse Head & shoulder
pattern (bullish pattern) neckline which is placed at 22126.80, which is a very
weak sign and if it fails to bounce back above it in next 1-2 trading sessions
and sustain then it will be a pattern failure and it may head down sharply,
which may please be noted.
Moving down from here the important support
points could be at 22053----21994----21963.75---21910---21905.65----21860---21801.45----21765---21731.40----21727.75-----21668----21593---21500----21448.65---21415---21380----21297.50----21137.20(figures
may change), it may bounce back from any
of these points and may resume the up move again, please note that it has
already slipped into short, medium and long correction mode for its recent rise as it
closed below its threshold point of 22368.71---22290.72 & 22198,
which is a weak sign, but if it holds 22053 on the closing basis then it can
get into pullback mode,1sustained break below 21905.65 & 21860
may trigger fresh fall, break below the range of 21801.45—21727.75 may
jeopardize the up momentum for the year 2024 and then break below each
point will weaken it further and finally sustained break below 21137.20
may accelerate the fall.
Moving up from here the important resistance
points could be at 22126.80----22151---22214-----22221---22263---22290.72----22297.50---22368.71----22419.50--22440.90----22549---22590---22625---22658----22735----22787---22870---23117.
Please note that it may
correct at any of these points and may resume the up move again or may exhaust
the up move for a while and move sideways. Please note that if it moves above 22126.80
and sustain then it may gain a foothold, if it moves above the range of 22151---22297.50(figure
will change daily) and sustain then it will gain good strength, it will get
out of all corrective mode if it moves above 22368.71 and sustain and
then it may get back on the up momentum track, which please note.
It is important to mention here all the five
important technical indicators are negative on the daily chart, one most
important indicator on the weekly & monthly chart is also negative and pointing
that it could head down in coming weeks/months. Furthermore it is making lower
top & bottom on the line & bar chart, it is below its short term moving averages and
some medium term moving averages on the daily chart and finally price action
has also weaken in last few days. Therefore all together the situation is
highly concerning and if it does not stage a sharp bounce back in next 1-2
trading sessions and move above the key points as mentioned above then the down
move will continue with in between short relief rallies. But if it holds 22053(figure
may change) on the closing basis then there will be a hope of a pullback up
move. It is still in the long term uptrend but in correction mode, therefore it
is sell on the rise market now but long trade can also be tried at critical
support points for pullback gains. Short term bias is down.
TRADING TIPS:--
1. Long
trade can be tried on decline near or within the range of 21905----21860
for some time with a stop loss of 21800 else avoid. However aggressive
can also try long trade if it holds 22023 for some time with a stop loss
of 21975. Please note that
long trade in corrective mode could be a risky affair but can be tried at extreme
critical support points with strict stop loss for pullback gains.
2. It is in
the long term uptrend therefore short trade in general could be a highly risky affair;
but it is into deep correction mode, therefore short trade can be attempted on
reasonable rise or on price breakdown for intraday corrective gains but with
extreme caution and alert. Short trade can be tried on the rise near or within
the range of 22170--- 22200 with a stop loss of 22270 or sell if
it moves below 21980 with a stop loss of 22060. It could be a
risky trade but worth trying for intraday corrective gains.
NOTE: - If
it opens up with huge gap up then wait for it to settle down before initiating
long position, but short trade can be attempted on huge gap up if it is near
the selling point and vice versa . Since, it is showing volatility so any type
of trade should be squared off during the day, if you don’t have reasonable
profit margin in the trade. Day squaring off is strongly suggested
in any case.
Disclaimer:-The view expressed here are solely of the author and he is not at all
responsible in any way for the outcome of the trade you enter based on the
above view.
Kindly note that make your cost your stop loss in favorable trade and then trail it as the
price move up/down to gain maximum profit and avoid losses. Use support and
resistance levels as entry, exit, target and trailing stop loss points. DO
NOT TRADE WITHOUT STOP LOSS.
Note: Price stated here are of spot market.
Thanks
Narendra
Kumar Surana
Mobile—8240951127/9831313654.
Email--- suranank@gmail.com
